Note Buyers

[Tricia Haggard]

I understand you can find legal documents on Pacer for bankruptcy cases. If I were on Pacer, will I be able to see if a second lien was stripped? If so, is there certain verbiage or documents I should be looking for to be able to tell if a lien is valid or not?

Thanks in advance for your help!

[Dion DePaoli]

@Tricia Haggard

Pacer is a BK file database, you can retrieve all BK files proceedings. You would have to pull the entire file and read through the plan and approval to see if the debtor attempted to strip the loan.

Second lien stripping is a touchy topic and depending on the state, the process and effects are still working themselves out. One argument is that the BK code is not for declaratory judgement of this nature. Another issue, is the lien must be found wholly unsecured, so if any equity can be associated, then the request may not pass.

If the debtor placed stripping language in, they would put it in the plan and the court would have to agree. Depending on where the case is and you are in ownership, the second lien would have had a chance to petition for your debt. If you entered the loan after, you will have to read any amendments to the plan and see if it was approved or denied. If approved and if the plan is dismissed, you loose nothing, if the plan is discharged, you can be unsecured and discharged via the BK.